The board of the Connecticut-based company discussed the possibility on Tuesday, and is considering making a cash-and-stock offer, people close to the matter told WSJ.
Xerox, a veteran printer and copy machine manufacturer, has a market value of $8.071 billion, while HP is valued at $26.64 billion, more than three times its value, data from Yahoo Finance shows.
HP spawned from the Hewlett-Packard Company when it disbanded in 2015.
The company has received a funding commitment from an unnamed major bank to help with the buyout deal, WSJ reported.
The publication mentions a possibility that Xerox doesn’t go through with the offer; even if it does, the company might not succeed in acquiring a company three times its size.
Xerox’s consideration comes at the same time when it is ending a year-long dispute with the Fujifilm Holdings Corporation (TYO: 4901) over their joint venture Fuji Xerox.
The company has agreed to sell its 25% stock in the venture to Fujifilm for $2.3 billion, Bloomberg reported on Tuesday.
Xerox's stock closed Tuesday at $36.37 per share, while HP Inc closed at $18.40 per share.